Texas church insurance is commercial property and liability coverage built for religious organizations in the state. A typical policy includes building coverage, general liability, and a wind or hail deductible. Three things on most of these policies in 2026 will reduce what gets paid in a claim, and they almost never get flagged at renewal. Here's how to find them on your own policy in about ten minutes.
You'll need your most recent declarations page in front of you. If you can't find it, ask your broker for a current copy. They're required to send it.
1. Your wind and hail deductible
Where to look. The declarations page. Find the line labeled "Wind/Hail Deductible," "Windstorm Deductible," or "Named Storm Deductible."
What you're looking for. Is it a flat dollar amount (e.g., $5,000) or a percentage of building value (e.g., 2%, 5%)?
What changed. Three or four years ago, a 1% deductible was the norm on Texas church policies. Today, most carriers reset renewals to 3% to 5% of building value. The change rarely shows up in a renewal cover letter; it's just inside the new dec page.
What that means in dollars. On a $2.5 million church building, a 5% deductible is $127,250 out of pocket before the insurer pays anything. That's a single hail event in North Texas.
If you find a percentage deductible: ask your broker about a deductible buyback endorsement. For a modest additional premium, it can bring a 5% back down to as low as 1%. Most churches don't know the option exists, and brokers rarely raise it on their own.
2. Your roof settlement basis
Where to look. The property coverage form, plus the list of endorsements attached to the policy. Search for "ACV," "actual cash value," or "roof schedule."
What it means.
| RCV (Replacement Cost Value) | ACV (Actual Cash Value) | |
|---|---|---|
| What it pays | Full cost to replace the roof with new materials and labor | The depreciated value of the roof at the moment of loss |
| 0–5 year-old roof | 100% of replacement cost | ~100% of replacement cost |
| 6–10 year-old roof | 100% of replacement cost | ~80% of replacement cost |
| 15+ year-old roof | 100% of replacement cost | ~50% of replacement cost |
| Out-of-pocket gap on a $200,000 roof at age 15 | $0 | ~$100,000 |
| When carriers add it | Standard on most newer policies | Increasingly common at renewal on roofs 10+ years old |
What changed. Texas carriers have been attaching an ACV roof endorsement at renewal more often in the last two years, especially on roofs over 10 years old or on roof types they don't love (3-tab asphalt, wood shake, older metal). Some carriers now drop to ACV at 10 years; many policies automatically convert at 15.
If you find an ACV endorsement: ask your broker whether you can move it back to RCV. If the carrier won't, get an actual ACV estimate of the roof now so you know what the payout would look like, and plan the shortfall into a capital reserve before the next storm.
3. Your building's replacement value
Almost nobody checks this one. It's also the most likely of the three to be costing your church money right now without anyone realizing.
Where to look. The declarations page. Find the line labeled "Building Coverage Limit," "Dwelling Limit," or "Total Insured Value."
Ask: when was this number last updated? If the answer is "sometime before 2023," you may have a problem.
What changed. Building supply costs have risen sharply since 2020. As Church Mutual's 2025 Commercial Insurance Trends report puts it:
"There has been a 19% average increase in building supply costs since 2020, which has led to both increases in overall building costs and in insurance premiums."
If your coverage limit hasn't moved in three or four years, your church is probably below the coinsurance threshold on your policy.
What coinsurance means. Nearly every commercial property policy requires you to insure the building for at least 80% (sometimes 90%) of its current replacement cost. If you're below that line at the time of a claim, every claim gets reduced proportionally, including small ones. It's standard, it's legal, and most policyholders don't find out until they file.
An example. A $200,000 claim on a building insured at 75% of the required amount pays $150,000 instead of $200,000. The $50,000 gap is on the church. You won't see the penalty in any disclosure; you'll see it on the adjuster's check.
If your building limit hasn't moved since 2023: ask your broker about an Agreed Value endorsement. It waives the coinsurance clause for the policy term. Some carriers also offer no-coinsurance policies outright. Either way, get a fresh replacement-cost valuation every 12 to 24 months so the insured value keeps up with what it actually costs to rebuild.
What to do next
Work through the three checks in order. They'll take about ten minutes.
- Did you find a percentage hail deductible above 1%? Ask about a deductible buyback.
- Did you find an ACV roof endorsement? Either fight for RCV, or price the gap and reserve for it.
- Is your building limit older than 2023? Order a replacement-cost valuation and ask about Agreed Value.
If none of the three apply to your policy, that's good news. Your broker has been on top of it, and you don't need to do anything else.
